Daily Report 27 October

SA Company News:

The JSE All-Share index was up more than 1% at 67 615 lifted by gains in shares of tech Naspers, luxury goods maker Richemont and miner Sibanye Stillwater,each rising over 2.5%. Trading update for Tiger Brands Ltd advised shareholders that headline earnings per share (HEPS) from continuing operations for the year ended 30 September 2021 is expected to be between 5% and 15% (or between 60 cents and 179 cents) lower than the 1 196 cents reported in FY2020. Results for the year ended 30 September 2021 are expected to be released on 19 November 2021. Famous Brands Ltd reported a 140% rise in half-year earnings. Headline earnings per share for the six months ended 31 August of 97 cents versus a loss of 240 cents in 2020. Famous Brands said it will not be paying an interim dividend. Impala Platinum Holdings Ltd said that it is in talks to buy Royal Bafokeng Platinum Ltd for an undisclosed amount.

SA Economy:

Andre De Ruyter stated that the energy transition to reduce carbon emissions at Eskom will cost more than R500bn. South Africa is fast tracking plans for climate change by priotising the production of fully electric vehicles. According to a Reuters poll economic growth in SA was estimated to have expanded 5% this year but will slow to 2.2% in 2022.

Global Economy:

Investors will be awaiting a speech by the UK Finance Minister Rishi Sunak on the budget later today. German consumer sentiment unexpectedly rose to a 19-month high of 0.9 going into November following an upwardly revision of 0.4 in October. Traders are also looking to policy announcements this week from the European bank for clues on the outlook for rates amid the backdrop of supply-side driven global inflation pressures. Reuters poll also indicated that growth in Nigeria is expected to be 2.7% next year up from 2.5% this year. The IMF expects sub-Saharan Africa to grow 3.7% in 2021 and 3.8% in 2022.

Global Company News:

U.S. stock indexes closed mostly flat with the Dow Industrials at 35 756 and S&P 500 at 4574. Microsoft Corp. continued to benefit from the global shift of many employees working remotely. The company reported earnings per share at $2.27, compared to market expectations of $2.07. Hang Seng Index was down 1.6% at 25605. Chinese tech giants led the downturn. Developments in China’s property sector will likely remain in focus, following a report that Chinese authorities are asking Evergrande’s founder to use his personal wealth to repay debt.

Commodities:

Gold fell 1.4% to $1 782 an ounce as a stronger dollar and higher U.S. bond yields weighed on the price. Brent oil futures fell 0.3% to $86.15 a barrel as US crude oil inventories rose 2.3 million barrels in the week ending October 22. Platinum is down 0.42% to $1 025.

Currencies:

The rand weakened to R14.83/$ as precious metals prices fell, and power utility Eskom extended scheduled power cuts. The US dollar is flat at $1.160 against the euro.

Brent Oil Futures
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Gold Futures
Top 40 Futures

 

Market Indicators

Commodities $ Cross Currencies ($) Major Indices
Gold 1787,65 (-1.08) USD/ZAR 14,85 Top40 61024,55 (+0.95)
Platinum 1021,80 (-3.25) GBP/ZAR 20,44 Dow 30 35756,88 (+0.04)
Brent 84,94 (-0.25) EUR/ZAR 17,22 S&P 500 4574,79 (+0.18)
Copper 4,44 (-1.80) EUR/USD 1,1598 FTSE 7277,62 (+0.75)
Palladium 2010,00 (-1.94) USD/JPY 114,04 DAX 15757,06 (+1.00)
Iron Ore 116,00 (+0.00) BITCOIN 60779,20 Shanghai 3556,02 (-1.24)
Source:  Investing.com